Over the course of the last week, Fartcoin [FART] has experienced an impressive surge of almost 200%. Surpassing the performance of Dogecoin [DOGE] and Shiba Inu [SHIB], Fartcoin initiated a significant V-shaped reversal starting on January 13th.
As of the current moment, this meme-based coin continues to achieve new all-time highs, demonstrating resilience even as other cryptocurrencies face downward trends.
Despite the recent bearish trend seen across the sector in the past few weeks, the launch of Official Trump [TRUMP], just two days ago, has been met with a relentless upward trajectory since its inception.
With a market capitalization already exceeding $2.08 billion, could Fartcoin potentially emerge as the next dominant meme currency?
FART Surpasses $1.6, Establishes Fresh ATH
Market sentiment, including that of Bitcoin [BTC], has been predominantly bearish for the past six weeks, with a gradual turnaround becoming noticeable only in the last week. Nevertheless, Fartcoin managed to hit new higher highs throughout December.
The bulls effectively defended the $0.71 level, a critical 61.8% retracement level.
Despite achieving these new peaks, the On-Balance Volume (OBV) struggled to surge significantly beyond local highs. This lack of substantial buying volume indicated a potential weakness in market support.
Moreover, the prevailing momentum has exhibited strong bullish characteristics in recent days, with the Relative Strength Index (RSI) on the daily timeframe failing to show any bearish divergences.
Given the establishment of support in the $1.95-$2 range, bullish investors may consider further upward movement following a period of consolidation.
Analysis of the liquidation map revealed a notable accumulation of liquidity towards the northward direction as opposed to the southward route.
This observation suggests that the rapid turnaround witnessed over the past week has coincided with a rise in short-selling activities, as market participants anticipated a minor decline in prices.
This behavior could be attributed to concerns that the meme coin may have overextended its run or that Bitcoin is on the verge of a corrective phase. Regardless of the rationale, the short-term goal for bullish traders appears to be the conversion of the $2.2 level into a strong support zone.
Disclaimer: The information provided is the writer’s opinion and should not be construed as financial, investment, trading, or any other form of advice.